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The contactors market size is estimated to grow by USD 301.02 million at a CAGR of 6.72% between 2022 and 2027. The growth of the market depends on several factors, such as the growing demand for motor protection devices, the stringent government regulations to promote energy conservation and the proliferation of smart grids and automation technologies. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
It also includes an in-depth analysis of drivers, trends, and challenges.
Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Defects in motors, transmission lines, and other expensive equipment can prove expensive for companies, as such defects may result in loss of production, repair of equipment, loss of raw materials, and poor quality production and delivery. In addition, the adoption of drives and motor control systems is growing in many end-user industries, prompted by the demand for the ongoing monitoring of devices to control productivity losses. Under such a scenario, they are used for switching high-load power in industrial motors. The adoption of such contractors helps shield motors from high voltage and current fluctuations and guarantees their optimal performance in heavy-duty industrial applications.
Generally, the power factor can be defined as the measure of distribution efficiency. When there is an imbalance in the power factor, the power utility must emphasize delivering more reactive power to lower the energy cost and the risk of system failure. In such a scenario, contractors act as reactive power generators and help lower the total amount of current drawn from the utility. In addition, contractors help eliminate an undesirable number of harmonics in the main power line, controlling the resonance phenomenon and preventing ripples in the power network. Further, the contactor draws the current directly from the power line supply located near the load and it is remote from the distribution board and is fixed on a sub-distribution board, which tends to restrict the charging current. Therefore, the rising advantages in increasing the overall lifespan of industrial motors drive the market and such factors are expected to drive the market growth during the forecast period.
In combination with overload relays, miniature contactors are used to control motors and other electrical loads remotely and offer them protection. They are best suited in areas or applications that face space constraints. Currently, most manufacturers choose equipment that is compact in size and occupies less space. Among all the contactors present in the market, these miniatures are the flattest and therefore, can be used in all modular and compact applications.
Furthermore, auxiliary contactors are used for shielding a wide range of control circuits. While the contractor refers to a mechanically operated switch that is used for switching a power circuit. They are mainly used in devices where there is signal switching and defaults. Therefore, the emergence of miniature and auxiliary contactors will boost the growth of the global market during the forecast period.
The significant factor impeding the growth of the global market is their operational and technical limitations. Failure in the opening caused by open circuit coils due to aging is an example of an operational challenge. In addition, the life expectancy of a contractor is a major concern among end-users. Their lifespan decreases because the contacts open and close frequently. The opening and closing of the contacts create an electric arc, which can generate extra heat.
Moreover, the continuous production of these arcs can damage the contact surface. Also, the electrical arcs cause pitting and burn marks, which eventually blacken the contacts. Therefore, it is essential to replace the contacts when they wear out and get corroded to a large extent. End-users find it hard to retain continuity in operations because of the frequent replacements of contractors. Such factors are expected to hinder market growth during the forecast period.
The AC contractors segment is witnessing significant growth momentum driven by the demand from various end-user industries. AC contractors are used in a wide range of applications, such as HVAC systems, aerospace, automotive, and several others, due to their ability to provide accurate and reliable torque control.
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The AC contractors segment was valued at USD 395.04 million in 2017 and continued to grow until 2021. The rising popularity of EVs among consumers around the world is a significant factor in driving the demand for AC contractors in EVs. Increasing investments in EV manufacturing and the growing demand for energy-efficient engines are among the most influential growth factors. In addition, key players are expected to increase their R&D investments in advanced vehicle systems, such as artificial intelligence (AI), connected vehicle technology, vehicle battery technology, and fast charging technology. Technological advances in EVs are expected to drive the demand for AC contractors, which will drive the growth of the AC contractors segment of the market during the forecast period.
End-User Segment Analysis:
The demand for residential buildings is growing globally, such as independent houses and apartments, due to the rapid increase in population and urbanization. To meet the power needs of residents, these residential buildings require efficient control and distribution systems. They are the key components in residential systems, as they allow reliable and safe switching of power to different household appliances and devices. Also, they are used in lighting control, motor control for pumps and fans, home security systems, HVAC systems, and other household applications. The rising number of residential buildings across the world is driving the growth of the residential segment of the global market during the forecast period.
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APAC is estimated to account for 43% of the global market growth. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In 2022, APAC dominated the contractors market and accounted for the largest share of revenue. This is due to the new advancements in the agricultural sector and large investments in industrialization in countries such as China, India, South Korea, and Australia. In addition, the rising production and sales of EVs in countries such as China and Japan and the presence of established OEMs such as Honda Motor Co., Ltd., Hyundai Motor Company, Toyota Industries Corporation, and Nissan Motor Corporation are expected to boost the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd. - The company offers the ACS800, the ACS550, and the ACS380.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., AMETEK Inc., Danfoss AS, Eaton Corp. Plc, Furukawa Electric Co. Ltd., HIMEL Hong Kong LTD., ISKRA elektro in sistemske resitve d.o.o, Kohler Co., Kunshan GuoLi Electronic Technology Co. Ltd., Legrand SA, LOVATO Electric Spa, LS ELECTRIC Co. Ltd., Rockwell Automation Inc., Sassin International Electric Shanghai Co. Ltd., Schneider Electric SE, Siemens AG, Zhejiang CHINT Electrics Co. Ltd., Hubbell Inc., Mitsubishi Electric Corp., and Schaltbau Holding AG
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The market is being driven by the increasing adoption of Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs), fueled by rising fuel prices and the push from government bodies towards emobility to reduce vehicle pollution and dependency on crude oil. Automotive manufacturers are increasingly using high voltage battery systems and integrating them into a high voltage network supported by renewable energy projects such as Solar energy and PV plants.
In the Asia Pacific region, rapid urbanization rates and increasing electricity demand are boosting the market. The Contactors market is segmented by product type, including DC contactors, which are crucial for power distribution networks and various end-use applications like automotive systems. Major players in the market include Volkswagen Group, BMW, Daimler, Delphi, Ford, and Renault. The market is expected to grow at the fastest CAGR in regions with rising per capita income and strong demand for electric vehicles, with key players like Medtronic Inc, Abbott Laboratories, Stryker Corporation, Siemens Electric, Allied Electronics & Automation offering products like the Easy TeSys product line and Silver PowerSeal contactors with high short-circuit ratings.
Contactors Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.72% |
Market growth 2023-2027 |
USD 301.02 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.23 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
US, Canada, China, Germany, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., AMETEK Inc., Danfoss AS, Eaton Corp. Plc, Furukawa Electric Co. Ltd., HIMEL Hong Kong LTD., ISKRA elektro in sistemske resitve d.o.o, Kohler Co., Kunshan GuoLi Electronic Technology Co. Ltd., Legrand SA, LOVATO Electric Spa, LS ELECTRIC Co. Ltd., Rockwell Automation Inc., Sassin International Electric Shanghai Co. Ltd., Schneider Electric SE, Siemens AG, Zhejiang CHINT Electrics Co. Ltd., Hubbell Inc., Mitsubishi Electric Corp., and Schaltbau Holding AG |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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